Course outline: Advanced Microeconomics MIM (ESCP), January 2012
Course textbook: Schotter, A., 2001, Microeconomics: A Modern Approach (Addison Wesley, 3rd edition/International)
1. Consumer behaviour
1a. Incentives matter*
Becker, Gary (1992) “The Economic Way of Looking at Life”, Nobel Prize Lecture
1b. Max U
[S] Ch.2 – complete Ex. 3, 5, and 6
2. Output decisions
2a. Cost curves*
Le Marmot (October 2010) – complete Exhibit 1
[S] Ch.5 - complete Ex. 8 and find two errors in the chapter
2b. Economies of scale
“Dogfight over Europe: Ryanair (A)” Harvard Business School case no. 9-700-115, November 21st 2007
[S] Ch.6
3. Markets and prices
3a. Market equilibrium (36)*
[S] Ch.4 – complete Ex. 8 and 9
3b. Price discrimination*
An Economist’s Passage to India (March 2011) – complete the assignment questions
[S] Ch. 3.14 and Ch. 9 - complete Ex. 4 and 6
4. Economics and strategy
4a. Introduction to Game Theory*
Robert Marks, “Thinking Strategically“(.pdf)
[S] Ch. 7 – complete Ex. 1 and 7
4b. Oligopolistic competition
[S] Ch. 11
5. Market design & entrepreneurial judgment
5a. Auctions
Hild, M., Dwidevy, A., and Raj, A., (2004) “The Biggest Auction Ever: 3G Licensing in Western Europe”, Darden Business Publishing
[S] Ch. 13.2
5b. Capital theory*
James, David N., (2002) “The trouble I’ve Seen”, Harvard Business Review
[S] Ch. 19 – complete Ex. 1
6. Asymmetric information
6a. Adverse selection
Akerlof, George A. (1970). “The Market for ‘Lemons’: Quality Uncertainty and the Market Mechanism”. Quarterly Journal of Economics 84(3):488–500
[S] Ch. 16 – complete Ex. 2 and 7
6b. Signalling*
Michael Spence (1973). “Job Market Signaling”. Quarterly Journal of Economics 87(3):355–374
7. Markets and management
7a. Prediction markets
Coles, Peter, Lakhani, Karim and McAfee, Andrew, “Prediction Markets at Google” Harvard Business School case no. 9-607-088, August 20th 2007
7b. Corporate entrepreneurship
“Automation Consulting Services” Harvard Business School case no. 9-190-053, November 6th 2000
8. Competition policy
8a. Competition and Monopoly*
[S] Ch. 10 – complete Ex. 3, 4 and 5
8b. Competition Commission Simulation
CC Simulation, December 2011
9. Presentations
Levi, Margaret,”Modelling Complex Historical Processes with Analytic Narratives” (.pdf)
10. Review session
Bring questions for review
Note: sessions marked with an asterix (*) have a lecture handout available in advance
